Media Capital hit by falling advertising revenues

Portuguese media company Media Capital has reported a 23% fall in operating revenues as a result of falling advertising revenues for its television division. The company, which operates commercial broadcaster TVI as well as news channel TVI 24 and radio stations and a television production arm, saw operating revenues fall to €90.9 million in its latest financial quarter with overall advertising revenues of €57.6 million, an 18% drop in the comparable period last year.

“In terms of financial performance, and given the difficult economic environment, the TV segment saw its operating revenues falling 11% (down 5% year-on-year in Q2). Advertising revenues came 21% lower than in 2011 (down 19.2% excluding the elections effect in the first half of 2011). Media Capital estimates the free-to-air advertising market to have fallen by approximately 22% year-on-year. In the quarter, advertising revenues also stood 21% below last year’s figure (down 19% excluding the elections), also on a year-on-year basis. In the same period, the Group estimates the free-to-air market to have decreased by 18%,” it noted in its results.

Separately, the company has seen an increase in subscribers for its international networks. The company launched TVI Internacional in 2010, which airs content from its TVI and TV24 stations, and it airs across Africa and in certain territories across Europe including Andorra, Luxembourg, France and Switzerland. During the first six months of the year, it increased the number of subscribers to 250,000.